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Mutuals - taxation

V

Viki2010

Member
Hi,

"a mutual would not normally have a taxable non-BLAGAB profit"


but if a mutual offers and sells products which are subject to non-BLAGAB tax rules for example:
- pension business or
- PHI business

these products have to be taxed based on a formula on trading profit.

So in this situation how would these products be treated for tax purposed if a mutual does not have taxable non-BLAGAB profits?
 
Non-BLAGAB business is taxed on trading profit, as you say. But a mutual does not (normally) make any profit, so it would be taxed on a non-BLAGAB profit of zero. Hence a mutual does not have to pay any tax on non-BLAGAB products.
 
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